A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Homeowners InsuranceCoverage that protects your house and belongings against damage and covers you if someone is hurt on your property.
- Replacement CostA claim payout method that pays what it costs to buy a new equivalent item, without deducting for wear.
- Actual Cash ValueA claim payout method that reimburses what an item is worth today, after subtracting for age and wear.
- Coverage LimitThe most an insurance policy will pay for a covered loss, above which you cover the rest yourself.
- Liability CoverageInsurance that pays for injuries or property damage you cause to others and helps cover legal costs.
- PremiumThe regular payment you make to keep an insurance policy active, usually billed monthly, quarterly, or yearly.
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Plain-English education — not personalized legal, tax, or investment advice.